Keepr vs Xero for Making Tax Digital
By the selector's own rules, Keepr and Xero both work for sole traders, so the choice comes down to the six points where they differ. Xero offers support for more than one property, support for jointly owned property, bank feeds and phone apps, which Keepr does not. Xero does not offer a free plan, which Keepr does. Their cheapest plans are listed as free for Keepr and £7 plus VAT a month (Simple) for Xero.
Keepr suits sole traders and freelancers with no rental income who want MTD filing at no cost, people who bill by the hour and want time tracking and invoicing next to their tax records and sole traders whose accountant would like their own login. Xero suits landlords with multiple properties, sole traders who also need payroll and anyone already using an accountant on Xero.
The facts on this page come from each provider’s own pages and from HMRC’s software list, and how we compare products explains how we check them.
If you are thinking of moving from one to the other, the guide to changing your MTD software explains what GOV.UK says about when you can move and what happens to your records.
Where they differ
These are the points where our checks of the two products came out differently. A “No” means we did not find that feature on the provider’s own pages when we last checked them. Where we had nothing to go on for one of the two, we leave the point out here rather than guess.
| Point | Keepr | Xero |
|---|---|---|
| Cheapest plan | Free | £7 plus VAT a month (Simple) |
| Free plan | Yes | No |
| More than one property | No | Yes |
| Jointly owned property | No | Yes |
| Bank feeds | No | Yes |
| Phone apps | No | Yes (iOS and Android) |
On the other points we compare (holiday lets and former FHL, self-employment income, receipt capture, accountant access and MTD for VAT returns), they give the same answer, or at least one provider does not say. The full list is under each product’s own page.
What HMRC’s software list says about both
HMRC’s list marks each feature as available now or intended for later. This is what HMRC’s list says, not something we have tested ourselves. Where HMRC lists a product under more than one name, we show the strongest answer and the listing it comes from.
| Feature | Keepr | Xero |
|---|---|---|
| Your tax return and other income | ||
| Sending your tax return | Available | Available |
| Foreign property | Not stated | Available |
| Construction Industry Scheme (CIS) | Not stated | Availablesince 16 October 2026 |
| Employment (PAYE) | Intended | Intended |
| UK dividends | Intended | Availablesince 16 October 2026 |
| UK interest | Intended | Availablesince 17 July 2026 |
| Capital gains | Not stated | Intended |
| How it works | ||
| Bridging software that connects to your records | Not stated | Not stated |
| Calendar update periods (1 April to 31 March) | Available | Available |
| A free version | Available | Not stated |
| Welsh language | Not stated | Not stated |
| Accessibility | ||
| Blindness or impaired vision | Not stated | Not stated |
| Deafness or impaired hearing | Not stated | Not stated |
| Motor or physical difficulties | Not stated | Not stated |
| Cognitive impairments | Not stated | Not stated |
This is HMRC’s list as it stood on 30 October 2026, at HMRC’s commit 201b34e. A date beside a feature is when HMRC’s list changed it from intended to available. HMRC’s software finder shows the current answers. How we read HMRC’s list
Does HMRC’s software list show Keepr and Xero as available for sending your tax return?
For sending your tax return, HMRC’s software list as it stood on 30 October 2026 marks it “Available” for Keepr and marks it “Available” for Xero.
Does HMRC’s software list show a free version of Keepr or Xero?
For a free version, HMRC’s software list as it stood on 30 October 2026 marks it “Available” for Keepr and says nothing either way for Xero.
How many features does HMRC’s software list mark as available for Keepr and Xero?
HMRC’s software list as it stood on 30 October 2026 covers 15 features, and it marks 3 “Available” for Keepr and 6 “Available” for Xero. For Keepr, it marks 3 “Intended” and gives no answer on 9. For Xero, it marks 2 “Intended” and gives no answer on 7.
The cheapest plan for your situation
A product’s cheapest plan is not always one you can use, because some plans are only for landlords or only for sole traders. These are the lowest prices the selector would show each reader, as each provider states them. Where a price grows with the number of properties, it is shown as a starting price. The figure over 12 months is the same plan at its regular price, worked out the way the software cost calculator does it.
Keepr
- For sole traders
- Free
- Cheapest plan over 12 months
- Free
We checked Keepr’s prices on 25 October 2026.
Xero
- For sole traders
- £7 plus VAT a month
- Cheapest plan over 12 months
- £84 plus VAT
We checked Xero’s prices on 25 October 2026.
Xero also works for landlords and people with rental and self-employment income.
Notes from our checks
Keepr
Keepr's MTD page says it covers sole trader self-employment income from start to finish, including digital records, all four quarterly updates and the final declaration, and that it has been on GOV.UK's software list since 28 August 2026. The same page lists UK property income, Scottish rates, the Construction Industry Scheme, foreign income, pension income, capital gains, the High Income Child Benefit Charge and partnership income as not supported, and employment income, UK interest, dividends and some reliefs as in development by April 2027. If your final declaration needs any of those you would need other software alongside Keepr, and landlords need different software for their property income, so we mark both plans as unsuitable when property income is in the picture. Keepr says MTD works the same on the free plan as on Pro, and gives Pro's annual price as £84. We did not find a bank feed, mobile apps or anything about furnished holiday lets. We checked this on 25 October 2026.
Xero
Regular prices include the September 2026 increase. Xero advertises one month free or 90% off for the first six months for eligible new customers. Simple is for non-VAT-registered businesses. Payroll, Expenses and other add-ons depend on the plan.
Neither product is ranked above the other here: the page sets out what each provider says so you can weigh it against your own situation. How we compare products